3rd Quarter 2004: Status and outlook Leif-Arne Langøy, President & CEO Bengt A Rem, CFO Oslo, 26 November 2004 Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy The figures in this presentation are pro forma and picture as if the restructuring was completed on 1 January 2004. All numbers are in NOK million unless stated otherwise. Aker 3Q04 presentation 2 1
Three centuries of Aker history Est 1841 Peter Steenstrup First CEO Kjell I Røkke Main owner Oluf A Onsum, founder Norcem (offshore, cement) RGI Davy/John Brown/Trafalgar Kværner Masa-Yards Aker Kværner Aker Yards Aker Seafoods Aker Matr Handl 1850 1900 1950 2000 Aker 3Q04 presentation 3 Group structure Ownership Parent and holding companies 58% 75% 100% 100% Illustration Aker Kværner Aker Yards Aker Seafoods No plan to reduce ownership in main business units Aker Material Handling Other Aker 3Q04 presentation 4 2
Group highlights Record order backlog: NOK 56 billion Main markets develop favourably Aker is well positioned with its technology and solutions 3Q profits on track NOK 1.8 billion EBITDA Reduced revenues in Aker Yards, continued good operations Strong profit growth in Aker Kværner. Improved performance in Aker Seafoods and Aker Material Handling Sound financial platform Restructuring completed with listing of Short-term debt repaid and refinanced Aker 3Q04 presentation 5 Key indicators 60 Backlog (NOK bn) 60 Revenues (NOK bn) 2,5 EBITDA (NOK bn) 50 50 2,0 Other 40 40 1,5 Aker Material Handling 30 30 1,0 Aker Seafoods 20 10 20 10 0,5 0,0 Aker Yards Aker Kværner 0 end 2003 YTD 2004 0 YTD 2003 YTD 2004-0,5 YTD 2003 YTD 2004 Aker 3Q04 presentation 6 3
and holding companies Strong financial structure Kværner Aker Yards 7.2 bn 8.3 bn = NOK 108 per Aker share* = NOK 94 per Aker share* Aker Kværner Market value listed shares (25 Nov 2004) Aker 3Q04 presentation 7 Book value listed and unlisted investments Internal debt External debt 3.1 bn 0.9 bn 2.2 bn Gross debt 1.9 bn Cash and IB assets 1.2 bn Net IB liabilities = NOK 15 per Aker share* * Adjusted for shares owned by Aker 3Q Highlights Aker Kværner Profits continue to climb, targets confirmed Record order backlog, generally strong markets Good progress in projects Key figures 3Q 3Q YTD YTD (in NOK million) 2003 2004 2003 2004 Revenues 7 459 8 921 22 261 25 493 EBITDA 257 364 660 1 023 Order intake 7 212 12 637 27 269 30 261 Order backlog 30 798* 35 562* Employees 23 034* 22 339* Aker 3Q04 presentation 8 * At end of period 4
Aker Kværner Strong order intake 14 000 12 000 10 000 8 000 6 000 4 000 2 000 Order intake (NOK mill) Ormen Lange MIC Kashagan topsides Frigg decom (booked in 4Q) 0 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 Aker 3Q04 presentation 9 Aker Kværner World-class product companies Approx 1 700 dedicated employees in specialised companies Aker 3Q04 presentation 10 5
3Q Highlights Aker Yards Margins still satisfactory, activity reduced Strong order intake 2004 targets revised up Good progress in projects Key figures 3Q 3Q YTD YTD (in NOK million) 2003 2004 2003 2004 Revenues 4 005 2 702 12 352 8 664 EBITDA 458 176 1 325 620 Order intake 8 631 6 684 9 704 10 905 Order backlog 17 016* 20 342* Employees 14 613* 13 371* Aker 3Q04 presentation 11 * At end of period Aker Yards Strong order intake 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Order intake (NOK mill) 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 Icebreaking PSVs Icebreaking CV Ultra-Voyager PSVs Aker 3Q04 presentation 12 6
Aker Yards Timely change initiatives The new Aker Finnyards The new Aker Brattvaag One company, 3 yards New name Aker Finnyards Oy Work groups identify potential synergies, needed actions and org changes One group comprising all yards in the Northwest region in Norway Goal: to increase competitiveness Initiated 7 June 2004, and implemented pr 1 October 2004 Aker 3Q04 presentation 13 3Q Highlights Aker Seafoods Strong sales, margins under pressure in Europe Limited harvesting Surimi market improves Key figures 3Q 3Q YTD YTD (in NOK million) 2003 2004 2003 2004 Operating revenues 337 484 1 126 1 479 EBITDA 10 25 69 107 Employees 1 274* 1 250* Aker 3Q04 presentation 14 * At end of period 7
Aker Seafoods Group overview Revenues split Aker Seafoods Corp 19 % 81 % Norway Seafoods JFK Seafood 1 factory trawler Harvesting 18 licences 12 trawlers ASC Far East 2 factory trawlers Processing 8 process plants ASC South America 2 factory trawlers 3 long-liners Distribution Pan-European network Aker 3Q04 presentation 15 Norway Seafoods Value chain Catch 30 000 MT Purchased + 35 000 MT Onshore processing = 65 000 MT Market Havfisk Lofoten Trålerrederi Hammerfest Industrifiske Own facilities in Norway and Denmark 21 000 MT External 14 000 MT Production Norway 30 000 MT Production Denmark 20 000 MT Round fish to market 15 000 MT Frozen products Fresh products Other consumer products 55% 40% 5% Aker 3Q04 presentation 16 8
Norway Seafoods in blue-green alliance Fresh fish on the dinner plate 364 days a year Strategic alliances Harvesting and landing Onshore processing Sale & Marketing Distribution in pan-european network Aker 3Q04 presentation 17 Norway s fisheries Inefficient catch pattern 60 000 Fleet idle 6 months/year Tonnes catch 50 000 40 000 30 000 20 000 People laid off 10 000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aker 3Q04 presentation 18 9
3Q Highlights Aker Material Handling Consolidation turn losses into profit in 3Q04 Increased order intake YTD Steel prices up, margins maintained Pro forma 3Q 3Q YTD YTD continuing business 2003 2004 2003 2004 Revenues 244 311 853 896 EBITDA -11 4-40 -7 Order intake 246 237 825 930 Order backlog 216* 270* Employees 718* Aker 3Q04 presentation 19 * At end of period Aker Material Handling Consolidation 2001-2004 EURO million 450 400 350 300 250 200 150 100 50 0 Sales 2000 Fixed budget rates Matr UK & Fra Asia- Handl Pacific 2001 2003 2003 Divestitures 2001-2004 Redirack Comms Constr 2003/ US Finland 2004 2003 2004 Cont busn 2000 2004 revenues Aker 3Q04 presentation 20 10
Aker Material Handling Climbing towards sustainable profits EURO million 1 2003 2004 0-1 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct -2-3 -4 EBITDA 12-mnth revolving -5-6 -7-8 -9 Aker 3Q04 presentation 21 Aker Material Handling Strong regional brands Relative share of sales 38% 22% 40% Factory: Hensmoen Norway Factory: Panningen Holland Factories: Laubach Halle Germany Sales offices Austria Belgium Czech Republic Denmark France Germany Holland Hungary Italy Norway Poland Sweden Switzerland Slovakia Aker 3Q04 presentation 22 11
Aker Material Handling Market segments Industrial storage systems Archive and filing systems Share of sales 70% 30% Pallet racks, shelving, machines Archives, shelves, filing systems/cabinets Aker 3Q04 presentation 23 Aker Material Handling Important VW award Volkswagen Baunatal, Germany With a contract value of EUR 2.3 million, the VW order is one of the biggest single orders for shelving systems in Germany VW to build two new warehouses at Baunatal facility Ordered Dexion HI280 shelving system 13 000 shelves 80 x 46 metres 5 000 shelves 37 x 23 metres Production at Hensmoen, Norway and Laubach, Germany Aker 3Q04 presentation 24 12
Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy Aker 3Q04 presentation 25 Aker group consolidated EBITDA by main business 3Q 3Q YTD YTD Year (in NOK million) 2003 2004 2003 2004 2003 Op revenues 12 397 12 554 37 803 37 302 51 458 EBITDA 756 562 1 995 1 784 2 607 Aker Kværner 257 364 660 1 023 1 003 Aker Yards 458 176 1 325 620 1 610 Aker Seafoods 10 25 69 107 74 Aker Material Handling * -11 4-40 -7-34 Other, eliminations * 42-7 -19 41-46 * Aker Material Handling numbers are pro forma for continuing business. This adjustment also affects eliminations Aker 3Q04 presentation 26 13
Aker group consolidated Income statement 3Q 3Q YTD YTD Year (in NOK million) 2003 2004 2003 2004 2003 Op revenues 12 397 12 554 37 803 37 302 51 458 EBITDA 756 562 1 995 1 784 2 607 Depreciation -207-203 -625-595 -842 Amortisation -92-130 -349-408 -547 Special operating items -133-6 -38-127 -484 Operating profit (EBIT) 324 223 983 654 734 Associated companies -8-6 -12-13 -14 Net financial items -116-188 -975-551 -1 131 Special financial items - - - - 122 Profit before tax 200 29-4 90-289 Tax -135-86 -104-217 19 Net profit 65-57 -108-127 -270 Aker 3Q04 presentation 27 Aker group consolidated Balance sheet 30.09 31.12 30.09 (in NOK million) 2003 2003 2004 Tangible and non-tangible fixed assets 15 594 14 772 14 806 Other fixed assets 1 550 1 212 880 Cash and interest bearing receivables 9 330 8 279 6 829 Other current assets 18 106 16 979 17 957 Total assets 44 580 41 242 40 472 Shareholders equity 7 482 6 681 6 279 Minority interests 3 015 2 561 2 753 Subordinated liabilities 4 023 3 946 4 068 Interest-bearing debt 13 976 11 711 10 889 Interest-free debt 16 084 16 343 16 483 Equity and liabilities 44 580 41 242 40 472 Net interest bearing debt 4 055 2 890 3 737 Equity ratio 23.5 22.4 22.3 Aker 3Q04 presentation 28 14
and holding companies Balance sheet 30.06 30.09 (in NOK million) 2004 2004 Tangible and non-tangible fixed assets 1 456 1 496 Long-term interest bearing items 714 836 Long-term financial assets 9 044 8 349 Other current assets 387 362 Cash and interest bearing receivables 1 361 1 154 Total assets 12 962 12 197 Shareholders equity 8 940 8 277 Non-interest bearing liabilities 826 774 Interest bearing liabilities 3 196 3 146 Equity and liabilities 12 962 12 197 Net interest bearing debt 1 121 1 156 Equity ratio 69 % 68 % Aker 3Q04 presentation 29 Aker Seafoods Key financials 3Q 3Q YTD YTD Year (in NOK million) 2003 2004 2003 2004 2003 Op revenues 337 484 1 126 1 479 1 523 EBITDA 10 25 69 107 74 Profit before tax -8-39 4-65 -43 Comments year to date Depreciation totalled NOK 117 million YTD 2004 Net financial items was NOK -55 million YTD 2004 Net interesting-bearing debt was NOK 361 million at end of September, down from NOK 456 million three months earlier Cash was NOK 138 million at end of September, up from NOK 38 million at the end of June Aker 3Q04 presentation 30 15
Aker Material Handling Key financials Actual numbers 3Q 3Q YTD YTD Year (in NOK million) 2003 2004 2003 2004 2003 Operating revenues 425 308 1 519 967 1 981 EBITDA 0 4-14 -4 3 Profit before tax -219-68 -230-262 -357 Order intake 1 060 1 953 Order backlog 270* 237* Comments year to date Table shows actual numbers, reflecting past financial and operational structure. Proforma figures for continuing business are shown on slide 20 External debt reduced to approx NOK 290 million at the end of September, further reduced since to approx NOK 150 million Aker 3Q04 presentation 31 * At end of period and other activities Key financials 3Q 3Q YTD YTD Year (in NOK million) 2003 2004 2003 2004 2003 Operating revenues 171 139 545 699 762 EBITDA 31-6 -45 38-83 Profit after tax -28-56 -574-156 -697 Comments year to date Includes parent companies costs NOK 72 million Legend assets sold in 3Q This segment includes Atlas Stord Legend Properties Wyndmore and other companies in holding company structure NorSea Group (33,5%) Geco Triton Aker 3Q04 presentation 32 16
Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy Aker 3Q04 presentation 33 Aker Material Handling Profitable Record order backlog Sound financial platform 17
Disclaimer This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for and s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trade mark for most of this entities. In this presentation we may sometimes use Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company. Aker 3Q04 presentation 35 18